Constellation to sell $5 billion PJM gas assets to LS Power.
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Constellation to sell $5 billion PJM gas assets to LS Power. Constellation Energy Corporation has struck a $5 billion agreement to divest a portfolio of natural gas-fired power plants in the PJM Interconnection to LS Power, marking the largest??? in meeting antitrust conditions imposed by U.S. regulators following its acquisition of Calpine earlier this year. The deal includes approximately 4.4 gigawatts of predominantly gas-fired capacity across Delaware and Pennsylvania, featuring key facilities such as Bethlehem, York 1 and 2, Hay Road, and Edge Moor. The implied valuation of roughly $1,142 per kilowatt underscores continued investor appetite for dispatchable thermal generation amid rising power demand. The transaction represents the most substantial portion of the divestitures mandated by the U.S. Department of Justice (DOJ) and incorporates all asset sales required by the Federal Energy Regulatory Commission (FERC). It is a central condition of regulatory approval for Constellation's acquisition of Calpine, which closed in January 2026 and created the world's largest private-sector power producer. Constellation CEO Joe Dominguez framed the agreement as a critical milestone in completing the regulatory process, with remaining DOJ requirements expected to be fulfilled later this year. The deal remains subject to final approvals from both the DOJ and FERC. The...
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